After retreating sharply last week, the gold prices continued to fall as the sell off pressure continued in the bullion market. The continued reversal in gold price is attributed to weak economic data emerging from Europe, China and the U.S.
Gold for April delivery lost $5.90, or 0.3%, closing at $1,703.90 an ounce on the Comex division of the New York Mercantile Exchange.
Last week, gold prices plummeted by over 4% after Fed’s chairman Ben Bernanke testimony to lawmakers. In his remark, Bernanke stop short of hinting at another round of quantitative easing.
Morgan Stanley said in a research note on Monday that negative real interest rates and accommodative monetary policy were and remain the key drivers of investment demand and Bernanke’s testimony last week did nothing to remove this benefit. Morgan Stanley said that under these circumstances, QE3 would have been icing on the cake for the monetary easing trade, but not the fundamental driver of bullish investor positioning.
Charles Nedoss, senior market analyst as Olympus Futures, Chicago said that Gold and silver have been left in precarious technical positions. “I don’t think the lows are here yet” for gold, and silver “has outpaced gold on its way up and it is doing the same thing on its way down,” added Nedoss.
Gold ETFs also fell sharply on Monday, with the SPDR Gold Trust (ETF) (NYSE: GLD) ending the day 0.43% lower at $165.65 on volume of 2.85 million.
Silver for May delivery dropped 87 cents, or 2.5%, closing the day at $33.69 an ounce.
In a note to its clients, German bank, Commerbank, wrote “There is additional scope for correction” in precious metals as managers who had flocked to gold earlier leave the trade, but the correction is likely to be temporary”.
Meanwhile,
on Monday other commodities and investments considered riskier also fell as world’s biggest commodities purchaser, China, lowered its economic growth target even as data on business activities in the euro zone contacted further.
April platinum fell $29.10 settling at $1,662.60 an ounce, while Sister metal palladium, for June delivery tanked $5.60 to settle at $706.95 an ounce
China revised its growth target to 7.5% from 8% as the country premier stated inflation and overall weak global economic will slow down business activities in China. The country now intends to focus on internal demand and consumption.
Commenting on China’s impact over the commodities prices, Jon Nadler, senior metal analyst at Kitco metals said that “Proving for the nth time that what happens in China is a pivotal impact factor to the commodities’ space, the most recent development in that country sent base and precious metals prices, along with most global equity markets, lower overnight”. He also added that “The first forecast for lower economic growth in eight years for that country derailed many an asset as the new trading week commenced. Gold and silver were clearly not immune to the negative news.”
Read more: http://thestockmarketwatch.com/stock-market-news/recent-events/business-news/gold-prices-continue-to-slide/22174#ixzz1oKm6YReO
Gold for April delivery lost $5.90, or 0.3%, closing at $1,703.90 an ounce on the Comex division of the New York Mercantile Exchange.
Last week, gold prices plummeted by over 4% after Fed’s chairman Ben Bernanke testimony to lawmakers. In his remark, Bernanke stop short of hinting at another round of quantitative easing.
Morgan Stanley said in a research note on Monday that negative real interest rates and accommodative monetary policy were and remain the key drivers of investment demand and Bernanke’s testimony last week did nothing to remove this benefit. Morgan Stanley said that under these circumstances, QE3 would have been icing on the cake for the monetary easing trade, but not the fundamental driver of bullish investor positioning.
Charles Nedoss, senior market analyst as Olympus Futures, Chicago said that Gold and silver have been left in precarious technical positions. “I don’t think the lows are here yet” for gold, and silver “has outpaced gold on its way up and it is doing the same thing on its way down,” added Nedoss.
Gold ETFs also fell sharply on Monday, with the SPDR Gold Trust (ETF) (NYSE: GLD) ending the day 0.43% lower at $165.65 on volume of 2.85 million.
Silver for May delivery dropped 87 cents, or 2.5%, closing the day at $33.69 an ounce.
In a note to its clients, German bank, Commerbank, wrote “There is additional scope for correction” in precious metals as managers who had flocked to gold earlier leave the trade, but the correction is likely to be temporary”.
Meanwhile,
on Monday other commodities and investments considered riskier also fell as world’s biggest commodities purchaser, China, lowered its economic growth target even as data on business activities in the euro zone contacted further.
April platinum fell $29.10 settling at $1,662.60 an ounce, while Sister metal palladium, for June delivery tanked $5.60 to settle at $706.95 an ounce
China revised its growth target to 7.5% from 8% as the country premier stated inflation and overall weak global economic will slow down business activities in China. The country now intends to focus on internal demand and consumption.
Commenting on China’s impact over the commodities prices, Jon Nadler, senior metal analyst at Kitco metals said that “Proving for the nth time that what happens in China is a pivotal impact factor to the commodities’ space, the most recent development in that country sent base and precious metals prices, along with most global equity markets, lower overnight”. He also added that “The first forecast for lower economic growth in eight years for that country derailed many an asset as the new trading week commenced. Gold and silver were clearly not immune to the negative news.”
Read more: http://thestockmarketwatch.com/stock-market-news/recent-events/business-news/gold-prices-continue-to-slide/22174#ixzz1oKm6YReO
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